Name: Nirav Jadav Q.1.

Brief on India Retail Industry

Roll no: 28

The Indian retail industry has scaled impeccable growth over the last decade with an amiable acceptance to organized retailing formats. The industry is maturing towards modern concept of retailing, cornering the conventional unorganized family-owned businesses. India has been ranked as the fourth most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney, in its Global Retail Development Index (GRDI) 2011. AT Kearney has also conducted a different study which says that organized retailers should follow hypermarket concept to penetrate through Indias US$ 435 billion industry. According to the report, given the gigantic size of the Indian retail market, it is no surprise that many Middle East retailers, most recently Lulu, have announced their interests to extend their retail operations to India. Retail in India: Market Dynamics The Rs 18,673 billion (US$ 401 billion) Indian retail market entails only 6 per cent of itself as organized retail segment as of 2010, according to Booz and Co (India) Pvt Ltd. Hence, there is a great potential to be explored by domestic and international players. The Business Monitor International (BMI) India Retail Report for the fourth-quarter of 2011 forecasts that the total retail sales will grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by 2015. The report has underlined factors like economic growth, population expansion, increasing wealth of individuals and rapid construction of organized retail infrastructure as major drivers for the optimistic forecast figures. According to a research report named Retail Sector in India by Research and Markets, Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. The report further highlighted that hypermarkets (currently accounting for 14 per cent of mall space) will witness immense progress in the Indian landscape.

Q.2.
Advantages of Organized Retail shop (Super Market)
1. Low Price Supermarkets benefit from bulk buying and low operational cost. Therefore, customers can buy products in low prices. 2. Customer Satisfaction The customers make their own selection and derive maximum satisfaction from their choice. 3. Fixed Price The supermarkets sell at fixed prices. 4. Cash Sales The supermarkets sell on cash basis and there is no risk of bad debt. 5. Large Sales Volume Customers fulfill their needs when they make purchases from supermarkets. Supermarkets also offer quality products. This results in large turnover and increased profit.

Disadvantages of Organized Retail Shop (Super Market)

1. Showing unbranded things in such a manner so, customer attracted to purchase 2. There are some time lack of varieties of products available 3. You cant taste any product before buying 4. For all it is not convenient to buy from the super market 5. You cant bring your bag or other items into the super market 6. You cant bargain or negotiate with the consumer

Advantages of Unorganized Retail Shop (Kirana Store) 1. Kirana stores target a much smaller market than supermarkets and thus, can be more
responsive in terms of their exclusive demands.

2. Kirana stores are likely to be in the immediate locality and it is convenient for customers
to buy from them.

3. Kirana stores are more likely to provide services like free home delivery 4. You can bargain with kirana wala for price and products. 5. Billing facilities also fast compare to the super market Disadvantages of Unorganized Retail Shop (Kirana Store)
1. Kirana stores have limited varieties of products. 2. The discount rate is lower as compared to supermarket. 3. Due to the limitation of space there cannot be many customers at the same time. 4. They do not provide their own sale/discount schemes. 5. Cleanness is not there